Stelco expects higher first quarter steel shipments

Canadian integrated steelmaker Stelco forecast shipments in the current quarter will increasefollowing a decline posted in the fourth-quarter.

The Canadian steel company said it expects to ship 650,000 short tons (st) of steel in the first quarter, an increase of 6pc compared with 612,000st shipped in the same period of 2019.

Stelco shipped 633,000st of steel in the fourth quarter, a decrease of 6pc from the year-earlier period. The company shipped 382,000st of hot-rolled coil (HRC) products, 106,000st of coated products, 105,000st of other products including slabs and non-prime steel, and 40,000st of cold-rolled coil products.

The company sold its products at an average price of C$659/st ($498/st) in the fourth quarter, down by 28pc from the year-earlier period.

Lower prices and shipments contributed to a fourth-quarter loss of C$24mn, compared with a C$110mn profit a year earlier.

For full-year 2019, Stelco's steel shipments totaled 2.44mn st, down by 7pc compared to 2.62mn st shipped in 2018, as lower HRC shipments outweighed higher cold-rolled shipments. The company shipped 1.7mn st of HRC products, 330,000st of slabs and non-prime steel, 326,000st of coated products, and 89,000st of cold-rolled coil products.

Average selling prices in 2019 fell by 18pc to C$729/st compared to the prior year.

Full-year profit of C$20mn was down by 92pc from the C$253mn Stelco earned 2018.

The company has delayed the relining of its Lake Erie Works blast furnace from the second quarter into the second half of the year. It expects to have the reline and a new 1 mn st/yr pig iron caster completed by the fourth quarter.

By Rye Druzin